This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were an autarky, consumers would get area:
A. A in consumer surplus.
B. ABCDEFG in consumer surplus.
C. ABCD in consumer surplus.
D. ABC in consumer surplus.
Answer: D
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According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________
A) unemployment might be zero B) inflation might be stable C) expected inflation must be stable D) price shocks must be zero E) none of the above
During times of recession, the labor force participation rate typically:
A. rises, as more people need work. B. rises, as more incomes per household are needed to make ends meet. C. falls, as more people give up and stop looking for work. D. falls, as more people cannot find work, they stay in jobs that aren't a good fit.
Intraindustry trade refers to
A) international trade in products made within the same industry. B) international trade in products made across different industries. C) trade that occurs as a result of comparative advantage. D) the exchange of dissimilar items.
Why do many film processing companies have a policy of printing every picture on a roll of film or a memory card, even if the picture is very fuzzy and customers are allowed to ask for refunds on any pictures they do not like?
What will be an ideal response?